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Novation Releases New Drug Price Forecast for 2014-2015

Category:

02/24/14

Dateline:

IRVING, Texas
"Hospitals today are faced with increasing pressures to both lower costs and increase quality, and formulating pharmacy budgets in this dynamic health care environment is never easy"

Novation, the leading health care supply chain expertise, analytics and contacting company, today announced the release of its latest Drug Price Forecast Summary Report. The semi-annual report provides pharmacy leaders with information and support resources to aide in the development of critical annual budget projections.

According to the latest information, Novation estimates the average cost of pharmaceuticals for purchases from July 1, 2014 through June 30, 2015 to increase about three percent. This is consistent with industry estimates of changes in the expense related to pharmaceuticals. The Drug Price Forecast Summary Report provides Novation’s projections of drug price behavior for key purchase categories representing the majority of pharmacy spending. The report also includes detailed price projections by generic name and therapeutic class, insights into hot industry topics, such as biosimilars, and information on factors likely to affect drug expenditures through 2017.

“Hospitals today are faced with increasing pressures to both lower costs and increase quality, and formulating pharmacy budgets in this dynamic health care environment is never easy,” said David Jameson, vice president, Pharmacy, Novation. “We are pleased to continue to provide hospitals with insights into drug purchasing patterns. This includes providing projections on price inflation as well as information on a number of trends that can have a significant impact on pharmacy purchasing programs.”

The Drug Price Forecast Summary Report is based on Novation’s industry-leading analytic software technology that enables the company to analyze millions of purchase and supply data points associated with its Pharmacy Program. For example, the annual committed purchasing volume through the Novation Pharmacy program portfolio grew to $23 billion in 2013, a 21 percent increase year-over-year.

The complete Drug Price Forecast Report can be accessed by the hospital members served by Novation through the Marketplace/Procure web portal.

About Novation

Novation is the nation’s leading health care services company, focused on revolutionizing operational performance for more than 100,000 members and affiliates of VHA Inc., UHC, Children's Hospital Association and Provista LLC. Novation’s progressive approach to cost performance, data and intelligence, and integrated advisory solutions helps health care providers envision and advance new models of cost-effective, high-quality care. Headquartered in Irving, Texas, Novation is committed to the highest standards of ethical behavior and twice has been honored with the Ethisphere Institute’s coveted Ethics Inside® Certification, and has been named four years consecutively to Ethisphere’s World’s Most Ethical Companies list.

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